Although price pressures remain benign against the backdrop of a sluggish jobs market, that is unlikely to stop the Federal Reserve from reducing the $85 billion in Treasury and mortgage bonds it is buying each month to keep interest rates low.

Inflation is expected to gradually rise as the economy regains some momentum. Economists expect an announcement on the future of the program could come at the end of next Tuesday and Wednesday's policy meeting.

In August, wholesale gasoline prices bounced back by 2.6 percent from a 0.8 percent drop the prior month. That helped to push up overall energy prices, which rose 0.8 percent.

Energy, which had dropped 0.2 percent in July, accounted for nearly two-third of the increase in wholesale prices last month.

Producer prices were also lifted by a 0.6 percent gain in food prices. Food prices were boosted by jumps in the cost of processed poultry, fresh and dry vegetables, as well as soft drinks.

Away from food and gasoline, passenger car prices fell 0.5 percent, while light truck prices dropped 0.3 percent. The two make up about 20 percent of the core PPI.